Principle 3: Precise Domains
As Robert Frost wrote, "Good fences make good neighbors."

An organization chart determines everybody's "domains" -- the boundaries within which each group functions.

Sometimes a group's domain is defined only by the few words in a box. When different people interpret those few words in different ways, three problems occur: overlaps, gaps, and a lack of focus.

Precise domains require a more detailed explanation of the boundaries than a few words in a box.

Beyond level of detail, there's also the question of how boundaries are defined.

Traditional "roles and responsibilities" aren't the answer.

They blur accountabilities and authorities because they define people's tasks rather than outcomes (products and services). Defining roles and responsibilities (tasks) begs the question, who's accountable for results -- the organization's products and services?

Even the more sophisticated "RACI" framework focuses on tasks rather than results, and risks separating authorities from accountabilities.

The key to good boundaries is defining what people produce rather than what they do. This is fundamental to empowerment -- managing people by results, not dictating how they do their jobs.

Dividing up results is actually a lot easier than sorting tasks. The list of an organization's products and services is far shorter than all the tasks people do and roles they play. And by defining who produces what, you'll automatically know who does what.

In summary, a healthy structure provides every group with precisely worded boundaries. It ensures no overlaps (internal competition) and no gaps. And domains bound what people produce, not the roles they play or the tasks they do.